IFRS Notes

Revaluation Surplus


Revalued amount = (1) - (2) - (3)
(1) fair value at revaluation date
(2) subsequent accumulated depreciation
(3) subsequent accumulated impairment losses


IAS 16-pr39, 40

Revaluation surplus
Increase in carrying amount after a revaluation
(1) Revaluation surplus is recognised in other comprehensive income
(2) Revaluation surplus is accumulated in equity under separate heading

Decrease in carrying amount after a revaluation
(1) Recognised in profit or loss
(2) If revaluation surplus has credit balance,
reduce revaluation surplus, first

If the increase is a reversal of previous decrease
which was recognised in profit or loss,
recognise such increase in profit or loss.


IAS 16-pr39, 40
When the asset is derecognised,
revaluation surplus in equity is transferred to retained earnings.